Indonesia fully supports efforts to disclose corporate social responsibility (CSR) to increase awareness of issues regarding the environment globally, as stated in the Sustainable Development Goals (SDGs). The connection between the disclosure of corporate social responsibility and the stock price crash risk is examined in this study. Furthermore, we analyse and check robustness and endogeneity issues to avoid variable bias selections. The study uses as its sample companies that are listed on the Indonesia Stock Exchange and follow the Global Reporting Initiative (GRI) for corporate social responsibility. It is found that companies with corporate social responsibility disclosures have a positive relationship with the stock price crash risk. Empirically, this finding contributes to broadening the scope of CSR research, while the relationship described in CSR is in line with the stock prices crash risk. This study shows that corporate social responsibility reporting has another side, which can be explained by management tactics. Thus, this study provides a new, broader, picture related to the characteristics of corporate events in Indonesia, showing that CSR disclosure patterns can result from corporate management interventions.

Bahasa Abstract

Indonesia mendukung penuh upaya pengungkapan tanggung jawab sosial perusahaan untuk meningkatkan kesadaran terhadap isu-isu lingkungan secara global, sebagaimana tertuang dalam Tujuan Pembangunan Berkelanjutan (SDGs). Hubungan antara pengungkapan tanggung jawab sosial perusahaan dan risiko jatuhnya harga saham diteliti dalam penelitian ini. Selain itu, kami menganalisis dan memeriksa masalah robustness dan isu endogeneity untuk menghindari pemilihan bias variabel. Penelitian ini menggunakan sampel perusahaan yang mengikuti Global Reporting Initiative (GRI) dan melaporkan tanggung jawab sosial yang terdaftar di Bursa Efek Indonesia. Temuan kami menunjukkan perusahaan dengan pengungkapan tanggung jawab sosial perusahaan memiliki hubungan positif dengan risiko crash harga saham. Secara empiris, temuan ini berkontribusi memperluas ruang lingkup penelitian CSR, hubungan yang dijelaskan dalam CSRD sejalan dengan risiko crash harga saham. Studi ini menunjukkan bahwa pelaporan tanggung jawab sosial perusahaan memiliki sisi lain yang dapat dijelaskan oleh taktik manajemen. Dengan demikian, penelitian ini memberikan gambaran baru yang luas terkait dengan karakteristik corporate event di Indonesia, bahwa pola pengungkapan CSR dapat dihasilkan dari intervensi manajemen perusahaan.


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